How can my bank charge me 120 dollars over draft fee when I had 240 in my account. That's not right

Question

Asked on February 4, 2024 in Banking for Louisiana

James L. Arrasmith · Answer

You raise a valid question. Generally, banks should not charge overdraft fees if there are sufficient funds in the account to cover a transaction. Here is some key information regarding overdraft fees in Louisiana: 
 
- Louisiana law prohibits banks and financial institutions from charging overdraft fees on ATM and one-time debit card transactions if there is enough money in the account to cover the transaction. 
 
- For other types of transactions like checks, Louisiana law does not explicitly prohibit banks from charging overdraft fees even if there are sufficient funds. However, the bank's fee practices should still be reasonable. 
 
- Charging a $120 overdraft fee when you had a positive balance of $240 that could have covered the transaction does seem potentially unfair or abusive.  
 
- Under federal banking laws, the Consumer Financial Protection Bureau can address issues with unreasonable bank fees like these.  
 
I would recommend sending a formal complaint to the bank manager in writing citing your account balance at the time and questioning the validity of the overdraft charges. If the fees are not reversed, you can file a complaint with the CFPB and Louisiana Office of Financial Institutions regarding unreasonable overdraft practices. Consulting a consumer rights lawyer is also an option to recover the improper fees.

Q: How can my bank charge me 120 dollars over draft fee when I had 240 in my account. That's not right